Azul concludes negotiations worth over US$ 2.4 billion with its bondholders, lessors and OEMs
Azul, Brazil's largest airline by destinations and daily flights, has successfully completed negotiations with bondholders, lessors, and OEMs, resulting in the elimination of US$ 2.1 billion in debt and financial obligations. The restructuring process, initiated in 2024, includes converting US$ 557 million of instruments into 94 million preferred AZUL4 shares and converting over US$ 785 million of financial debt maturing in 2029-2030.
The company secured a US$ 525 million capital injection and strengthened its cash flow by more than US$ 300 million through 2027. Despite challenges including Brazilian real devaluation, high fuel costs, and supply chain issues, Azul achieved amicable agreements with all partners. The restructuring will deleverage Azul by approximately 1.4x on a pro-forma basis using 3Q 2024 figures. The company plans to add 15 new Embraer E2s to its fleet throughout the year.
Azul, la maggiore compagnia aerea del Brasile per numero di destinazioni e voli giornalieri, ha completato con successo le trattative con obbligazionisti, locatori e produttori, portando all'eliminazione di 2,1 miliardi di dollari USA di debiti e obbligazioni finanziarie. Il processo di ristrutturazione, avviato nel 2024, include la conversione di 557 milioni di dollari USA di strumenti in 94 milioni di azioni privilegiate AZUL4 e la conversione di oltre 785 milioni di dollari USA di debito finanziario in scadenza nel 2029-2030.
La compagnia ha ottenuto un'iniezione di capitale di 525 milioni di dollari USA e ha rafforzato il proprio flusso di cassa di oltre 300 milioni di dollari USA fino al 2027. Nonostante le sfide come la svalutazione del real brasiliano, gli alti costi del carburante e i problemi con la catena di approvvigionamento, Azul ha raggiunto accordi amichevoli con tutti i partner. La ristrutturazione ridurrà il debito di Azul di circa 1,4 volte su base pro-forma utilizzando i dati del terzo trimestre 2024. La compagnia prevede di aggiungere 15 nuovi Embraer E2 alla sua flotta nel corso dell'anno.
Azul, la aerolínea más grande de Brasil por destinos y vuelos diarios, ha completado con éxito negociaciones con tenedores de bonos, arrendadores y fabricantes de equipos originales, resultando en la eliminación de 2.1 mil millones de dólares Estados Unidos en deudas y obligaciones financieras. El proceso de reestructuración, iniciado en 2024, incluye la conversión de 557 millones de dólares Estados Unidos en 94 millones de acciones preferentes AZUL4 y la conversión de más de 785 millones de dólares Estados Unidos de deuda financiera que vence en 2029-2030.
La compañía aseguró una inyección de capital de 525 millones de dólares Estados Unidos y fortaleció su flujo de caja en más de 300 millones de dólares Estados Unidos hasta 2027. A pesar de los desafíos, incluidos la devaluación del real brasileño, altos costos de combustible y problemas en la cadena de suministro, Azul logró acuerdos amistosos con todos los socios. La reestructuración reducirá el apalancamiento de Azul en aproximadamente 1.4 veces en base pro forma utilizando cifras del tercer trimestre de 2024. La compañía planea agregar 15 nuevos Embraer E2 a su flota a lo largo del año.
아줄, 브라질에서 목적지와 일일 비행편 수가 가장 많은 항공사는 채권자, 임대인 및 OEM과의 협상을 성공적으로 마무리하여 21억 달러의 부채 및 재정 의무를 제거했습니다. 2024년에 시작된 구조조정 과정은 5억 5700만 달러의 금융 수단을 9400만 AZUL4 우선주로 전환하고, 2029-2030년에 만료될 7억 8500만 달러 이상의 재정 부채를 전환하는 것을 포함합니다.
회사는 5억 2500만 달러 규모의 자본 주입을 확보했으며, 2027년까지 3억 달러 이상 현금 흐름을 강화했습니다. 브라질 레알의 가치 하락, 높은 연료비 및 공급망 문제와 같은 어려움에도 불구하고, 아줄은 모든 파트너와의 원만한 합의를 이루어냈습니다. 구조조정은 2024년 3분기 수치를 기준으로 아줄의 부채 비율을 약 1.4배 줄일 것입니다. 이 회사는 올해 동안 15개의 새로운 엠브라에르 E2 항공기를 추가할 계획입니다.
Azul, la plus grande compagnie aérienne du Brésil en termes de destinations et de vols quotidiens, a réussi à conclure des négociations avec les créanciers obligataires, les bailleurs et les fabricants d'équipements d'origine, ce qui a abouti à l'élimination de 2,1 milliards de dollars US de dettes et d'obligations financières. Le processus de restructuration, initié en 2024, comprend la conversion de 557 millions de dollars US d'instruments en 94 millions d'actions privilégiées AZUL4 et la conversion de plus de 785 millions de dollars US de dettes financières arrivant à échéance en 2029-2030.
L'entreprise a sécurisé une injection de capital de 525 millions de dollars US et a renforcé son flux de trésorerie de plus de 300 millions de dollars US d'ici 2027. Malgré les défis, y compris la dévaluation du réal brésilien, les coûts élevés du carburant et les problèmes de la chaîne d'approvisionnement, Azul a réussi à parvenir à des accords amicaux avec tous ses partenaires. La restructuration réduira l'effet de levier d'Azul d'environ 1,4 fois sur une base pro forma en utilisant les chiffres du 3e trimestre 2024. La société prévoit d'ajouter 15 nouveaux Embraer E2 à sa flotte au cours de l'année.
Azul, die größte Fluggesellschaft Brasiliens nach Destinationen und täglichen Flügen, hat erfolgreich Verhandlungen mit Anleihegläubigern, Vermietern und OEMs abgeschlossen, was zur Eliminierung von 2,1 Milliarden US-Dollar an Schulden und finanziellen Verpflichtungen führte. Der im Jahr 2024 eingeleitete Restrukturierungsprozess umfasst die Umwandlung von 557 Millionen US-Dollar in 94 Millionen Vorzugsaktien der AZUL4 sowie die Umwandlung von über 785 Millionen US-Dollar an finanziellen Schulden, die 2029-2030 fällig werden.
Das Unternehmen sicherte sich eine Kapitalzufuhr in Höhe von 525 Millionen US-Dollar und stärkte seinen Cashflow um mehr als 300 Millionen US-Dollar bis 2027. Trotz Herausforderungen wie der Abwertung des brasilianischen Reals, hohen Treibstoffkosten und Problemen in der Lieferkette erzielte Azul einvernehmliche Vereinbarungen mit allen Partnern. Die Restrukturierung wird die Verschuldung von Azul auf pro forma Basis um etwa 1,4-fach verringern, basierend auf den Zahlen des 3. Quartals 2024. Das Unternehmen plant, im Laufe des Jahres 15 neue Embraer E2 in seine Flotte aufzunehmen.
- Elimination of US$ 2.1 billion in debt and financial obligations
- New capital injection of US$ 525 million
- Cash flow strengthening by US$ 300 million through 2027
- Deleveraging by 1.4x on pro-forma basis
- Fleet expansion with 15 new Embraer E2s
- Significant shareholder dilution through conversion of US$ 557 million debt into 94 million shares
- Challenging operational environment with high fuel costs
- Currency exposure to Brazilian real devaluation
Insights
The successful conclusion of Azul's US$2.4 billion debt restructuring marks a transformative moment for Brazil's largest airline, demonstrating exceptional negotiation skills in avoiding formal bankruptcy proceedings. The deal's structure is particularly noteworthy, combining US$2.1 billion in debt elimination with a substantial US$525 million capital injection, providing both immediate relief and future operational flexibility.
The conversion of US$557 million in lessor and OEM obligations into 94 million preferred shares represents a strategic debt-to-equity swap that, while dilutive to existing shareholders, significantly strengthens the balance sheet. The restructuring of US$785 million in 2029-2030 maturities provides important breathing room for long-term planning. The US$300 million improvement in cash flow through 2027 will enhance operational flexibility and investment capacity.
The 1.4x leverage reduction on a pro-forma basis signals a substantial improvement in Azul's financial health, potentially leading to better financing terms and increased investor confidence. The planned addition of 15 new Embraer E2s in 2025 indicates strong growth potential, with these fuel-efficient aircraft likely to improve operating margins and route flexibility.
Key strategic benefits include:
- Enhanced fleet modernization capabilities
- Improved negotiating position with suppliers
- Strengthened competitive position in Brazil's aviation market
- Greater financial flexibility for route expansion
- Reduced exposure to currency fluctuations
The Company concluded its restructuring process initiated in 2024 to solidify its financial position, eliminating
Faced with a challenging scenario, the company opted for a commercial negotiation with its partners, enabled by its reputation and solid business model.
SÃO PAULO, Jan. 28, 2025 /PRNewswire/ -- Azul, the largest airline in
With over 16 years of operation in
"This is another very important moment in Azul's history, as we conclude a negotiation process that will solidify our company even further. In addition to the extinction of
The extinction of obligations includes strategic commercial agreements with lessors, manufacturers, and other suppliers, also ensuring a strengthening of the cash flow by more than
In addition to providing an improvement in cash flow over the next three years, the conclusion of the agreements will deleverage Azul by approximately 1.4x on a pro-forma basis using 3Q 2024 figures.
"We are very optimistic about Azul's future. We will add 15 new Embraer E2s to our fleet throughout this year, which will be extremely valuable to solidify our plan and expand access to air travel across the country. We thank our partners and investors for their trust, which allowed us to successfully conclude this negotiation and who will continue to support us in the constant strengthening of Azul," concludes the executive.
About Azul
Azul S.A. (B3: AZUL4, NYSE: AZUL) is
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SOURCE Azul
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